Gym Lease Renegotiation: Win Favorable Terms

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Jim Thomas Gym Consulting | Fitness Business Resource

Jim Thomas Gym Consultant

892 episodes

4 days ago

Health & Fitness

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Health & Fitness

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Gym Lease Renegotiation: Win Favorable Terms

Jim Thomas Gym Consulting | Fitness Business Resource

6 minutes 38 seconds

2 weeks ago

Gym Lease Renegotiation: Win Favorable Terms

The source, a white paper by Jim Thomas for independent gym and studio owners, presents a comprehensive guide on renegotiating commercial leases to improve profitability. Thomas emphasizes that a lease is often the largest fixed expense and can silently drain funds through hidden costs like annual escalations and Triple Net (NNN) charges. The text advises owners to renegotiate not just at renewal, but when their occupancy cost exceeds 15% of revenue or when the local market shifts. Winning a negotiation requires gathering market data and rent comps, understanding leverage (such as being a long-term tenant), and asking for strategic concessions like Tenant Improvement (TI) credits or CAM fee caps. Ultimately, the goal is to transform the lease from a liability into a growth asset by securing terms that improve cash flow and business valuation.